Term
| Definition of Internal Control |
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Definition
| a process effected by an entity's board of directors, management, and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories; reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. |
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Term
| Control Goals of Operations Processes |
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Definition
| Ensure Effectiveness of Operations, Ensure Efficient Employment of Resources, and Ensure security of resources. |
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Term
| Control Goals of Information Processes |
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Definition
| Input Validity, Input Completeness, Input Accuracy, Update Completeness, and Update Accuracy. |
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Term
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Definition
| a measure of success in meeting one or more goals for the operations process. |
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Term
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Definition
| a measure of the productivity of the resources applied to achieve a set of goals. |
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Term
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Definition
| protecting an organization's resources from loss, destruction, disclosure, copying, sale, or other misuse. |
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Term
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Definition
| input data are appropriately approved and represent actual economic events and objects. |
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Term
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Definition
| all valid events or objects are captured and entered into a system. |
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Term
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Definition
| all valid events must be correctly captured and entered into a system. |
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Term
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Definition
| all events entered into a system must be reflected in the respective master data. |
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Term
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Definition
| data entered into a system must be reflected correctly in the respective master data. |
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Term
| 5 components of Internal Control COSO framework |
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Definition
| Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. |
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Term
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Definition
| sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. |
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Term
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Definition
| is the entity's identification and analysis of relevant risks to achievement of its objectives, forming a basis for determining how the risks should be managed. |
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Term
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Definition
| are the policies and procedures that help ensure that management directives are carried out. |
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Term
| Information and Communication |
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Definition
| system supports the identification, capture, and exchange of information in a form and time frame that enable people to carry out their responsibilities. |
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Term
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Definition
| is a process that assesses the quality of internal control performance over time. |
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Term
| Enterprise Risk Management (ERM) |
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Definition
| is a process effected by an entity's board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. |
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Term
| 8 components of ERM framework |
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Definition
| Internal Environment, Objective Setting, Event Identification, Risk Assessment, Risk Response, Control Activities, Information and Communication, and Monitoring. |
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Term
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Definition
| mandates the annual filing of an internal control report to the SEC. |
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Term
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Definition
| Evaluate the design of the company's controls to determine if they adequately address the risk that a material misstatement of the financial statements would not be prevented or detected in a timely manner. Gather and evaluate evidence about the operations of its controls. The nature and extent of this evidence is to be aligned with its assessments of the risk associated with those controls. Present a written assessment of the effectiveness of internal control over financial reporting. |
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Term
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Definition
| Described the need for an internal control system. |
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Term
| 1977 Foreign Corrupt Practices Act |
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Definition
| Legislative mandate requiring internal control. |
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Term
| 1987 Treadway Commission Report |
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Definition
| Recommendations for strengthened internal control. |
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Term
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Definition
| Defines Internal Control as a Structure. |
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Term
| 1991 Federal Sentencing Guidelines |
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Definition
| Existence of effective controls reduces exposure to fines. |
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Term
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Definition
| Guidance on achieving good internal control. |
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Term
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Definition
| Defines Internal Control as a process. Amends SAS No. 55. |
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Term
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Definition
| Best practices in controlling IT. |
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Term
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Definition
| Addresses impact of IT on Internal Control. |
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Term
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Definition
| Guidance in considering fraud in an audit. |
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Term
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Definition
| Section 404's internal control requirements. |
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Term
| 2004 Auditing Standard No. 2 |
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Definition
| Guidance for audits of internal control over financial reporting. |
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Term
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Definition
| Broader subject to Enterprise Risk Management. |
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Term
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Definition
| Guidance for assessing risk in an audit of financial statements. |
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Term
| 2007 Auditing Standard No. 5 |
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Definition
| Replaces Auditing Standard No. 2. |
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Term
| 2008 Proposed Audit Standards |
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Definition
| Seven PCAOB proposed risk assessment standards. |
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